Ans: Accounting is an integral of two terms-Account & science. In it’s literal meaning ‘Account’ means ‘Counting’. Accountancy is an applied discipline. The system in which financial transactions of an organization for a particular period are recorded to know the operating results and the financial position of that concern to analyses and communicate the same to interested users is called Accounting.

Renowned accountants and institutes have given various definitions of Accounting; some quotable definitions are mentioned bellow:

‘Accounting may be defined as the collection, compilation, and systematic recording of business transactions in terms of money, the preparations of financial reports, the analysis and interpretation of these reports for the information and guidance of management.’

-According to A.W.Jhonson-

‘Accounting refers to the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users f the information’

-According to the American Accounting Association-

‘Accounting is the art of recording, classifying, summarizing in a significant manner in terms of money transaction or events which are in part of at least of a financial character and interpreting there of.’

-American Institute of Certificate Public Accounting-

‘Accounting is an information system that identifies records and communicates the economic events of an organization to interested users.

-Weygant, Kieso and Kimmel-

In this changing world human life is also changing. With the change of everything trade and commerce is also changing, with the changes, modifications and complexities of business. With the development of technology the implication of Accounting has achieved a new shape.